Foreign nationals working in Papua New Guinea generally require both a valid work permit and an employment visa. Applications are sponsored by the employing entity and typically require evidence that suitable local candidates are unavailable for the role.

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Work permits are usually issued for a fixed duration and must be renewed where employment continues.

Employers must register with the Internal Revenue Commission (IRC) and comply with Salary and Wages Tax (SWT) obligations. Payroll is generally processed monthly, although other payroll frequencies may be used.

• Deductions: Salary and Wages Tax, superannuation contributions, and authorised deductions.
• Employer Contributions: Employers commonly contribute to approved superannuation funds such as Nasfund or Nambawan Super.
• Superannuation Contributions:
  
  • Employer: Generally 8.4%
  • Employee: Generally 6%

• Contract Types: Fixed-term and indefinite-term contracts are permitted. Written employment agreements are standard practice.
• Probation Period: Typically three to six months.
• Working Hours: The standard workweek is generally 44 hours.
• Overtime: Overtime must be compensated at premium rates in accordance with employment legislation and industrial awards.
• Termination: Termination requires valid grounds and compliance with statutory procedures.
• Notice Periods: Typically one day to one month depending on employee category and length of service.
• Severance: Severance may be payable in redundancy situations or where required by contract.

• Annual Leave: Employees generally receive at least 14 consecutive days of paid annual leave after one year of service.
• Sick Leave: Employees are commonly entitled to paid sick leave supported by medical certification.
• Maternity Leave: Female employees are entitled to approximately six weeks before and six weeks after childbirth, subject to eligibility requirements.
• Paternity Leave: No comprehensive statutory entitlement, although some employers provide paid leave.
• Public Holidays: Employees are entitled to nationally recognised public holidays.
• Superannuation: Mandatory retirement savings contributions apply through approved superannuation funds.

• Tax Residency: Individuals are generally considered tax residents if they reside permanently in Papua New Guinea or are present for more than six months in a year.
• Non-Residents: Taxed only on Papua New Guinea-sourced income.
• Tax Year: January 1 – December 31.
• System: Progressive Salary and Wages Tax system.
• Double Taxation Treaties: Papua New Guinea maintains tax treaty agreements with a number of countries.